Edward Winterton, commercial director at Bibby Financial Services, says: “What we have seen with the Funding for Lending scheme is that banks are lending out to businesses which are at the safer end of the risk spectrum, the kind of businesses that any provider would lend to. This is allowing them to say that they are pushing out funds to businesses and passing on the capital released by the Bank of England but in reality there is an element of cherry picking going on.

“They are not out there helping the businesses most in need, those firms that have great potential but need the kind of funding that will help them realise that potential. And looking at some of the rates that they are lending out at, it doesn’t look as if they are always passing on the savings they are making by receiving the funding at a knockdown rate.

“How can they turn round and say they are supporting businesses when they are not always responding to the demands of UK SMEs?”